New Models of Financing and Financial Reporting for European SMEs: A Practitioner's View

Description

This book looks at the 23 million registered Small and Medium Enterprises (SMEs) that make up 98 per cent of the EU economy. Addressing the high end of SMEs in terms of new models for SME funding and financial reporting, this merged way of looking at SMEs reveals a ‘myopic’ thinking in terms of net present value and (future) cash flows generating short-termism and low risk appetite for business. This is not an accounting issue, but rather a preference toward certain financial tools. A segment of SMEs, the ones that seek new ways of funding possibilities, as well as modern technologies (MTFs listing, blockchain, ICOs, etc.) do require, even without knowing, IFRS for SMEs. This book reveals how market conditions impact the financial performance and sustainability of SMEs and also generate innovative policy interventions and financing strategies for SME integrity and efficiency. The authors frame their arguments in the context of the Capital Markets Union, looking at the Innovation Triangle, SME growth ecosystem and business models. They conclude by advocating for closing the circle of financing and financial reporting for SMEs, while considering if new financial models of financing and financial reporting are good for all the SMEs or only for some. The economy is being shaped by new models of financing and financial reporting. Read this practitioners’ view to understand the current changes and challenges. Front Matter ....Pages i-xxxvi The SMEs Literature Review: Perspective of Studies (Raz van Hoinaru, Georgiana Oana Stănilă)....Pages 1-19 Front Matter ....Pages 21-21 The Role of the State in the Innovation Triangle: Law and Policy Fostering the Optimal Regulatory, Business and Innovation Policy Environment (Pēteris Zilgalvis)....Pages 23-38 Catalysing the SME Growth Ecosystem in the New Information Age (Luca Peyrano)....Pages 39-54 Financing SMEs in the EU: Challenges and Opportunities (Horst Heitz)....Pages 55-61 Financing Models for SMEs in the Age of Disintermediation (Ruth Wandhöfer)....Pages 63-70 Funding Innovation in the Era of Weak Financial Intermediation: Crowdfunding and ICOs for SMEs in the Context of the Capital Markets Union (Dimitrios Psarrakis, Eva Kaili)....Pages 71-82 Front Matter ....Pages 83-83 Towards Business Model Reporting for SMEs (Colin Haslam)....Pages 85-93 New Relevance of Accounting and Reporting: SMEs, Ethics and Sustainability (Olivier Boutellis-Taft)....Pages 95-105 Financial Reporting for Small Listed Companies (Darrel Scott)....Pages 107-115 Financial Reporting by Quoted SMEs (Andrew Watchman)....Pages 117-131 The IFRS for Small and Medium-Sized Entities (Veronica Poole, Laurence Rivat, Jens Berger)....Pages 133-159 Conclusion: Closing the Circle of Financing and Financial Reporting for SMEs. Our Formula (Raz van Hoinaru)....Pages 161-166 Back Matter ....Pages 167-179